Simplifying Systems & Creating Efficiencies

Situation

A small mom and pop restaurant that had been in business for over 15 years were using multiple food vendors as a way to keep each one of them honest on their pricing.

Problem

While this process seemed logical, because each vendor had a lack of volume, they were charging very high margins on some items in order to make money on their account. Additionally, as overworked and understaffed restauranteurs they were spending too much time juggling the relationships of multiple vendors, cutting several checks, dealing with shortages, and different ordering systems to name a few challenges. This created a system of inefficiency.

Solution

By checking their current pricing from all of their vendors against the set pricing of our group purchasing organization (GPO), we were able to demonstrate that while they were getting some competitive pricing on certain products for each of their vendors, they were getting gouged on others. We enrolled them into our free membership program to be part of our GPO, connecting them with a single vendor and a free and simple electronic ordering system.

Benefits

We were able to save the restaurant 14% in expenses as well as the time of chasing vendors, cutting a multitude of checks, and dealing with various different systems for ordering.

For additional information, contact Jack Frost at 916-469-9227 or jack@lbgbuyinggroup.com.